The UK Retail Landscape
The UK retail landscape is in constant flux. The high street evolves to accommodate changing trends, and as a ...Read More
We understand it can be tricky organising your business’s finances, especially when covering essential costs such as energy. That’s why our guide is here to explain the VAT and CCLs paid on business gas and electricity tariffs to help you determine if you are eligible for a discount on these costs.
Most businesses pay 20% VAT on their gas and electricity bills. Energy suppliers automatically apply VAT to your bills, so if your business is eligible for a discount down to 5% VAT on energy, you need to apply for the VAT reduction separately.
To be eligible for the discounted 5% VAT for gas and electricity, you must meet these criteria:
If your usage is low enough, your energy supplier should automatically reduce the VAT amount for you. To be a low gas and electricity user, your business must:
To apply for discounted VAT on your business energy tariffs, you can use a VAT declaration form. You can get this form from your supplier, and apply for a rebate for the past four years of energy usage. You can apply for your VAT rebate from either your supplier or HMRC.
A Climate Change Levy (CCL) is a tax applied to business energy contracts to encourage commercial customers to increase their energy efficiency and reduce their emission levels.
If you are eligible to apply for discounted VAT, you are also likely to qualify for immunity from paying the main rates of CCL
If you are not eligible for immunity from paying the main rates of CCL, you receive a discount on CCL tax by signing a Climate Change Agreement (CCA). The conditions within a CCA mean that when you sign, you are agreeing to make certain alterations to your business to improve its energy usage and reduce its emission levels.
If you require any help with determining your eligibility for the available VAT and CCL discounts, get in touch on 0800 411 8830 and our team will happily advise you.
If you feel you are spending too much on your energy bills, you can start tackling this by comparing a wide range of energy tariffs with our online comparison service. We work with a variety of suppliers and find gas and electricity rates tailored to your business’s usage, so you can feel secure knowing you’re getting the best deal for your business.
Kay was extremely helpful and…
"Kay was extremely helpful and efficient, in terms of both advice and setting up our account. Would recommend 100%."This review was posted by customer on the 24th of November 2020
After Scottish Power changed our…
"After Scottish Power changed our business rates half way through the contract we were in set up by Switch My Business, we spoke to Natalja and she helped us sort this issue. Unfortunately, Scottish Power wouldn't play ball and were not agreeing to let us out the contract. Natalja worked extremely hard to sort this out for us and even put a claim in with them for the out of contract rates they put us on as one advisor at Scottish Power said they would refund the difference then another said they would not, along with plenty of other issues and broken promises along the way. It was a long and pretty painful process but Natalja did not give up and we have won the claim against Scottish Power. Very happy with the service Natalja provided."This review was posted by Sara on the 19th of November 2020
Prompt & efficient service from Stephen…
"Prompt & efficient service from Stephen who really went into all the details in a very short period of time. I would definitely use SMB again. Thank you Stephen!"This review was posted by Jackie on the 18th of November 2020
"Dealt with Bhavni, she was also extremely helpful, patient and dealt with my case in a very professional way. Answered all my questions promptly and got the best rate for our business. Highly recommended!"This review was posted by S. Amin on the 17th of November 2020
Pleased with switch my business
"Pleased with switch my business, Arron was very helpful, found the best tariff and always responded quickly to emails."This review was posted by Eve Gallagher on the 16th of November 2020